Doom & Gloom of previous years gives way to improved pricing and opportunities
September 09, 2019 — OLDWICK, N.J.–(BUSINESS WIRE)–In a new AMBestTV episode from the 2019 Les Rendez-Vous de Septembre (Rendez-Vous) conference in Monte Carlo, Monaco, AM Best analysts say that following the “doom and gloom” of the previous couple years, reinsurance pricing has improved and opportunities in the cyber market abound. Click on here to view the entire program.
The analysts spoke at AM Best’s annual Reinsurance Market Briefing, and said that despite some improvements, the fragile global economy remains a concern for reinsurers.
“Looking back over the course of the year, we have a less positive view on economic growth now than we did a year ago,” said Greg Carter, AM Best managing director, analytics. “The United States was growing very strongly, with signs of growth across Europe. But now I think you’ve seen a lot of that reverse, and the ongoing U.S.-China trade war is only going to dampen growth globally.”
Cyber remains the top area for growth, though caution is advised
“Last year it was all pretty much all doom and gloom. We had come through a bad year for catastrophes, and there really wasn’t much movement in pricing and terms and conditions,” said Robert DeRose, AM Best senior director. “We had no idea what January or the subsequent June 2019 would hold, but to our surprise, we saw some positive momentum in pricing.”
The panel also spoke about market opportunities, and said that while cyber remains a top area for growth, the majority of players have been cautious in approaching the segment. “The modeling in this area is still very primitive,” said DeRose. “Those companies that are not approaching the market with some degree of caution could be burned quite badly if there were an event of material size.”
Other people that appear in this episode:
- Nick Charteris-Black, managing director, market development — EMEA, AM Best; and
- Carlos Wong-Fupuy, senior director, AM Best.
To access a copy of AM Best’s recent Best’s Market Segment Report on the global reinsurance industry, visit here.
For full video coverage of the Rendez-Vous conference, including exclusive executive interviews, visit here.
Recent AMBestTV episodes include:
Evolving Reinsurance Environment Calls for New Strategies, Say AM Best Analysts: DeRose and Scott Mangan, AM Best associate director, discuss the sustainability of the reinsurance industry’s newfound underwriting discipline.
Swiss Re Retakes Top Spot in AM Best’s Annual Global Reinsurance Ranking: Filippo Novella, financial analyst, AM Best, said Swiss Re moved past Munich Re in the ranking, and detailed other developments, such as appearances in the top 50 for Argo Group and Qianhai Re, a recently formed Chinese reinsurer.
Lloyd’s Maintains Its Positions in Global Reinsurance Market: Jessica Botelho-Young, an AM Best senior financial analyst, said reinsurance accounted for 31% of Lloyd’s gross written premium in 2018.
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